The AMP Ltd (ASX: AMP) share price has put on a disastrous performance over the last few years. Indeed, it has dumped 77% of its value in just five years. But the S&P/ASX 200 Index (ASX: XJO) company looks a touch shinier now.
It's recently sold its infrastructure debt platform and its Global Equities and Fixed Income business. The company is now working to finalise the sale of its real estate and domestic infrastructure business and its international infrastructure equity business.
AMP – now solely focused on AMP Bank and its wealth management businesses – has also committed to a $1.1 billion capital return.
Does that mean its share price is travelling a path towards recovery? Shaw and Partners senior investment advisor Jed Richards doesn't think so.
Keep reading to find out why the expert believes investors should abandon the 173-year-old financial services provider.
The AMP share price last traded at $1.13.
What might the future hold for AMP shares?
It's time to sell AMP shares, according to Richards, as the company fails to garner hope from the expert.
He told The Bull the company's recent half-year results "showed weak earnings growth in its bank and wealth divisions".
AMP posted a $117 million underlying after-tax profit for the first half of 2022 – down 24.5% on that of the prior period.
Of that, $46 million was brought in by AMP Bank – down 45% year on year. Its wealth asset management businesses, meanwhile, brought in a combined $53 million, marking a 17% drop.
Richards continued:
While recent asset sales may provide a payout boost to shareholders in the short term, they remove a key growth component from the company's business strategy.
The expert concluded by noting his belief that recovering AMP's lost scale will likely demand "significant reinvestment". Thus, he labels the stock a sell.
The last few years have been rough on the AMP share price, but the stock is outperforming year to date. It has gained 13% since the start of 2022 and is currently trading 2% higher than it was this time last year.
For comparison, the ASX 200 has dumped 10% year to date and 9% over the last 12 months.
